Para 3.8.1 — MSO

Audit Objectives and Scope 3.8.1 Regularity audit and propriety audit, which are generally applied to individual transactions, alone are not adequate for an assessment of the implementation and results of a plan, project, programme or scheme, or the functioning of an organisation in terms of its goals and objectives. Such an assessment can be made only on the basis of a comprehensive review of the projects, programmes, schemes, organisations, etc. in terms of their goals and objectives aimed at ascertaining the extent to which the expected results have been achieved from the use of available resources of money, men and materials. This audit is known as Efficiency-cum-Performance Audit (ECPA) or Value for Money (VFM) Audit. ECPA is a technique of audit adopted to assess and evaluate the economy, efficiency and effectiveness of development schemes, projects or organisations and hence this branch of audit is also known as Economy, Efficiency and Effectiveness Audit or the Three Es Audit. Economy means operation at the lowest possible cost, while efficiency is the maximization of outputs from a given input. Effectiveness deals with achieving the programmed objectives and goals and ensuring that intended benefits arise in real terms